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All that is required is the cash balance problem, screenshots are at the bottom.

Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 113,000 Unit sales for December 2019 102,000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 111,000 Expected unit sales for March 2020 115,000 Expected unit sales for April 2020 125,000 Expected unit sales for May 2020 139,000 Unit selling price $ 12 Waterways likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $ 183,600. Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit. Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2019, totaled 11,370 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2019, totaled $ 103,725. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $ 9 per hour. Manufacturing Overhead Indirect materials 30 per labor hour Indirect labor 50 per labor hour Utilities 50 per labor hour Maintenance 200 per labor hour Salaries $ 42,000 per month Depreciation $ 15,100 per month Property taxes $3,000 per month Insurance $ 1,100 per month Maintenance $ 1,300 per month Selling and Administrative Variable selling and administrative cost per unit is $ 1.50. Advertising $ 14,000 a month Insurance $ 1,300 a month Salaries $ 74,000 a month Depreciation $ 2,800 a month Other fixed costs $ 2,900 a month Other Information The Cash balance on December 31, 2019, totaled $ 102,000, but management has decided it would like to maintain a cash balance of at least $ 800,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $ 2.30 per share for 4,750 shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $ 1,000 increments at 9% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $ 450,000 equipment purchase is planned for February. Requirement Sales Budget Particulars Units Sales Price Sales Revenue January February March Quarter 114,000 111,000 115,000 340,000 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 1,368,000 $ 1,332,000 $ 1,380,000 $ 4,080,000 Requirement Production Budget Particulars Budgeted Sales Add : Desired Ending Inventory Total Needs Less : Beginning Inventory Production Budget January 114,000 11,100 125,100 11,400 113,700 February 111,000 11,500 122,500 11,100 111,400 March 115,000 12,500 127,500 11,500 116,000 Quarter 340,000 12,500 352,500 11,400 341,100 April 125,000 13,900 138,900 12,500 126,400 April 126,400 2 252,800 Requirement Direct Materials Budget Particulars Production Kilograms per Unit Direct Materials Required for Production Add : Desired Ending Inventory Total Needs Less : Beginning Inventory Direct Materials Required Raw Material cost per Lb. Direct Material Purchases Cost January February March Quarter 113,700 111,400 116,000 341,100 2 2 2 2 227,400 222,800 232,000 682,200 11,140 11,600 12,640 12,640 238,540 234,400 244,640 694,840 11,370 11,140 11,600 11,370 227,170 223,260 233,040 683,470 $ 0.80 $ 0.80 $ 0.80 $ 0.80 $ 181,736 $ 178,608 $ 186,432 $546,776 Requirement Direct Labor Budget Particulars Production Hours per Unit Hours required Rate per Hour Direct Labor Cost January February March Quarter 113,700 111,400 116,000 341,100 0.20 0.20 0.20 0.20 22,740 22,280 23,200 68,220 $ 9 $ 9 $ 9 $ $ 204,660 $ 200,520 $ 208,800 $ 613,980 January February March Quarter Manufacturing Overhead Budget Particulars Variable Costs : Indirect Material Indirect Labor Utilities Maintenance Total Variable Cost Fixed Costs : Salaries Depreciation Property Taxes insurance Janitorial Total Fixed Costs $ $ $ 6,822 $ 11,370 $ 11,370 $ 4,548 $ 34,110$ 6,684 $ 11,140$ 11,140 $ 4,456$ 33,420 $ 6,960$ 20,466 11,600 $ 34,110 11,600 $ 34,110 4,640 $ 13,644 34,800 $ 102,330 42,000 $ 15,100 $ 3,000 $ 1,100 $ 1,300 $ 62,500 $ 42,000 $ 15,100 $ 3,000 $ 1,100 $ 1,300 $ 62,500 $ 42,000 $ 126,000 15,100 $ 45,300 3,000 $ 9,000 1,100 $ 3,300 1,300 $ 3,900 62,500 $ 187,500 $ Total Manufacturing Overheads Direct Labor Hours Predetermined overhead rate for the Quarter 96,610 $ 22,740 $ 95,920 $ 22,280 $ $ 97,300 $ 289,830 23,200 $ 68,220 $ 4.25 Selling and Administrative Expenses Budget Particulars Budget Sales in Units Variable Expenses per Unit Total Variable S&A Expenses January February March Quarter 114,000 111,000 115,000 340,000 $ 1.50 $ 1.50 $ 1.50$ 1.50 $ 171,000 $ 166,500 $ 172,500 $ 510,000 Fixed Expenses : Advertising Insurance Salaries Depreciation Other Fixed Costs Total Fixed Expenses 004 14,000 $ 1,300 $ 74,000 $ 2,800 $ 2,900 $ 95,000 $ 14,000 $ 1,300 $ 74,000 $ 2,800 $ 2,900 $ 95,000 $ 14,000 $ 42,000 1,300 $ 3,900 74,000 $ 222,000 2,800 $ 8,400 2,900 $ 8,700 95,000 $ 285,000 $ Total S&A Expenses $ 266,000$ 261,500 $ 267,500 $ 795,000 Schedule of Expected Cash Collections Particulars Accounts Receivables January Sales February Sales March Sales Total Cash Collections January February March Quarter $ 183,600 $ 183,600 $ 1,162,800 $ 205,200 $ 1,368,000 $ 1,132,200 $ 199,800 $ 1,332,000 $ 1,173,000 $ 1,173,000 $ 1,346,400 $ 1,337,400 $ 1,372,800 $ 4,056,600 Schedule of Expected Cash Payments for Purchases Particulars January February March Quarter Accounts Payables $ 103,725 $ 103,725 January $ 90,868 $ 90,868 $ 181,736 February 89,304$ 89,304 $ 178,608 March $ 93,216 $ 93,216 Total Payments $ 194,593 $ 180,172 $ 182,520 $ 557,285 WATERWAYS CORPORATION Cash Budget For the First Quarter of 2020 First Quarter January Beginning Cash Balance $ 102000 $ Add V: Recepts Collections From Customers Total Avaliable Cash V: Disbursements Direct Materials Direct Labor Manufacturing Overhead Selling and Administrative Dividends Equipment Purchase Total Disbursements Excess (Deficiency) Of Available Cash Over Cash Disbursements Financing Add : Borrowings Less Repayments Interest Ending Cash Balance $ $ VATERWAYS CORPORATION Cash Budget For the First Quarter of 2020 First Quarter January February March Quarter 102000 $ $ 102000 450000 450000 1 $ $ $